Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
We retail investors are invariably contrarian indicators. The poor retail take up is bullish in my book. They didn’t talk to us because they didn’t need to. Guidance is clear for H2 2024. If they hit guidance it goes up many x, if they don’t, it goes bust. Place your bets.
ONT should merge with Pacific Bio - who are roughly the same market cap but have actually underperformed us! ONT could reverse in and pick up a US listing at the same time….
Well done. Smart.
This is a super cyclical so the market will aggressively look forward to any hint of earnings recovery. The old rule is to buy a super cyclical on the last earnings CUT. If you wait for the earnings to move higher, you’ll miss the big moves. Takes a bit of guts but otherwise there’s no point trying to play in stocks like this.
Agreed. CEO is clearing out the stables and has ambitions of putting together a world class team.
Happier today, Ironknut? A superb RNS. I think management are world class.
The old market rule is to buy super-cyclicals like this one on the LAST earnings cut, and sell on the last earnings upgrade of each cycle. Do profit warnings come in threes? If so, there’s a case to buy on a poor H1 23 trading update.
Fair. We could do with more communication. If it’s Baillie Gifford doing the dumping, they historically never care about a graceful exit and the chart suggests that’s what has happened here. I’m interested in whether they’re disappointed in Creo biz development or whether they’ve got too many fast growing mouths to feed and have had to prune (given poor recent numbers and redemptions). Creo will wait until the seller is finished before updating us. There’s no point pushing on a string. I still like this name and will hold.
Illiquidity makes this stock a bumpy ride but it’s one of the best stories on AIM. It’s a very simple business, run by people who know what they’re doing and who have lots of skin in the game - note recent purchases by directors, for eg.
In essence, it takes in savings at one rate of interest and lends out to any firm that holds inventory (a classic example would be a caravan/mobile home supplier) at a higher rate. The longer the kit stays on the forecourt, the more money they make. I’ve no idea when the market will reward holders of the stock, perhaps after we breakeven and go into profit next year. But it’s a robust, self-funding business and expertly run. Am v happy to hold a good sized position here on a two year + view.
Smartinvestment, surely has it right.
Let the numbers do the talking. If the numbers are as good as we think they can be then questions around the non-execs cease to be relevant, in my view. A strongly growing business with an executive team who also own a significant percentage of equity answers so many questions. If there are board changes in that scenario then that tells you that the non execs were getting in the way of faster growth, not aiding it. The execs and other significant holders clearly want to grow the business aggressively and are not interested in carrying passengers.
This really is a stock for all seasons….structural growth across existing and new markets at, what, 40% p.a.? Demonstrated ability to pass through inflation pressures. Management owned/controlled so lots of skin in the game. Below institutional radars for the moment. ESG - a trend on the back foot but only temporarily.
My view: Mr Nichols was a pompous, arrogant mate of the old CEO at IP Group, and he had failed at an earlier IP Group business, too. I take it as a significant positive that he is going. We have an excellent chairman who now has more direct control of the business.
We are on something like 5.5x sales for 2022, here… (£3.5mn of revenues on a market cap of £19/20mn). This is a long, long way from the ‘bubble’ sales multiples currently being compressed by markets in the US.
The RNS clearly steers us towards additional revenue lines in the near term, too - all off a cost base which is low and well under control.
You don’t have to dream about ‘futures transformed’ to buy this stock. I view it as an early stage growth stock in the highly dependable and highly rated consumer staples sector. Buy.
A portfolio decision, surely? The XBI index in the US has been hit so hard of late that most/all biotech funds are currently raising cash where they can…
Overhang now removed from this ‘simple’ yet fast growing, bank.
I haven’t been able to add to my position all morning…frustrating but a good sign.
Kitchen-sink by new incoming CEO…might as well get all the bad news out now, rebase expectations a lot lower and then he’ll look like a hero over the next few years. This is a super-cyclical stock. You have to buy them on what you hope is the last earnings cut, and sell them going into the last earnings upgrade of the cyclical. That’s the theory anyhow! I’ve bought a bit here. Good luck!
Best guess is Invesco are still the seller because of redemption pressures on a number of their poorly performing funds. I’d also point out that over in the US, the biotech index, XBI, has been having a torrid time for a while (prob due to sensitivity of long duration equity to rate rises, plus Biden regulation/pricing fears). It’s a fantastic company with cash out to 2025+. Please don’t sell it!
Coffee always a good idea.
I note two v large trade reports at exactly the same times on the same day over at RENE…
“That $800 million buyout of Nightstar has turned into a bust for Biogen as the lead therapy in the deal failed a pivotal study, signaling a severe setback for the biotech’s ambitions in gene therapies.
The big biotech put out the word after the market closed on Monday that the gene therapy they picked up in the deal for a degenerative blindness called choroideremia failed the Phase III study, just a month after their #2 drug in the deal also flopped in a mid-stage study.
We don’t have the data yet on timrepigene emparvovec, but Biogen $BIIB left little to the imagination. The treatment failed the primary endpoint — proportion of participants with a =15 letter improvement from baseline in best corrected visual acuity (BCVA) at Month 12 — as well as all key secondaries. Biogen execs say they’re studying the results now, but a salvage operation looks unlikely.
Katherine Dawson, head of the Therapeutics Development Unit at Biogen, took a stoic stand in her prepared statement.
While we are disappointed by the results of the STAR study, we are hopeful that the clinical insights gleaned from this study may help to shape therapeutic innovation for inherited retinal diseases including choroideremia, so that in the future there may be treatment options for the community affected by these debilitating disorders.
As Jason Mast reported several weeks ago, their Nightstar therapy for a rare and progressive form of blindness called X-linked retinitis pigmentosa (XLRP) “failed to sufficiently improve vision in patients’ treated eye — patients only received an injection in one eye — after a year, on a standard scale, compared to their untreated eye.” But there was some hope for a comeback. “The company said they saw ‘positive trends’ on several secondary endpoints, including visual acuity, but declined to say whether the trial actually hit any of those endpoints.”
https://endpts.com/biogen-signals-a-big-phiii-failure-as-the-lead-gene-therapy-in-their-800m-nightstar-buyout-goes-down-in-flames/
Clearly a big disappointment to patient groups but, assuming the patient eye infection issue is indeed a one-off, we have fewer horses in the race against us than we did. Perhaps even more importantly gene therapy, which was like cat nip to big pharma/biotech, is more problematic than the industry wanted to believe. We are the science equivalent of flairs or wide lapels. Our tech has been out of fashion but perhaps not for much longer….
From endpoints. Our North American license partner is on the naughty step again. Nothing directly related to DNL product but ‘sub optimal’ if Eton’s image/reputation is tarnished with medics and its reps find it harder to get in the door to sell.
“For the second time in three years, Eton Pharmaceuticals has received a complete response letter from the FDA, this time for its dehydrated alcohol injection to treat methanol poisoning. The company blamed the delay on a missing inspection but also pointed to “other questions” from the agency.
On Friday, Eton disclosed it had received a letter from the agency, tying it to a pending pre-approval inspection of its European manufacturer due to Covid-related travel restrictions. But it’s worth noting that the FDA doesn’t issue CRLs based solely on inspection delays, an agency spokesman previously told Endpoints News, indicating there may have been other issues with Eton’s application.
“The company believes all other FDA questions raised in the letter can be fully addressed in a response in the coming months,” the company said in a release. A spokesman could not be reached at press time.
Chaps, I think you’re off the mark. These comp packages are typical middle ranking salary packages that you’d see in any city law firm or banking corporate finance department. Without highly sophisticated and experienced deal makers this company is worthless. I doubt you realise the skill and work behind the scenes to bring in the lithium deal, for e.g..
Give them another year /18 months and judge them then. If this company was a widget maker in S****horpe, you’d think nothing of two or three hundred grand being invested in shiny new equipment. Well, we’re investing in human capital so you’re going to have to get used to punchy compensation packages to incentivise top talent, or you’ll chose to move on.